In the second of three installments about nefarious allegations made by a former Pfizer finance manager in Mumbai, Question Authority’s Peter Rost offers a curious mix of surveillance reports and phone records to paint a picture of a foreign unit run amok.

The first episode dealt with a dodgy sale of a manufacturing plant at a fraction of its real value and intimations of kickbacks. This latest mini-tale centers on alleged efforts to spy on activist investors who objected to Pfizer’s takeover of Warner-Lambert and its Parke-Davis unit. But these activities may have been undertaken with the knowing consent of HQ, Rost writes.

When Pfizer execs from New York arrived in Mumbai, they received written proof that Pfizer India had hired a team of detectives who operated by using bribes, corporate spies, pretexting, and even suggested paying off employees in other companies to leak confidential information which Pfizer desired.

Dinesh Lakhani and Janak Mathuradas, two shareholders who opposed the merger, were among those whose privacy apparently was violated. Why? The merger in India had been approved by a judge in February 2003. However, four shareholders - Lakhani, Mathuradas, Arvind Vyas and Hiren Vyas - appealed and obtained an ad interim stay in May 2003.

This very much angered Pfizer management, and that’s when the alleged spying began. Supposedly, this was done with the approval of the head of Pfizer India, who remains on the job, despite the fact that Pfizer execs in New York were presented with the same documents Question Authority has posted.

The last installment should be available in a few hours. Get out your voodoo dolls….now.

Read all about it here.

[tags]Ethics, Pfizer[/tags]